West Warwick council approves changes to pensions, benefits

WEST WARWICK — The Town Council has approved sweeping changes to municipal pensions and benefits in a bid to balance the budget in the next fiscal year and cut costs in the long term.

By Alex Kuffner | | Journal Staff Writer

WEST WARWICK - The Town Council has approved sweeping changes tomunicipal pensions and benefits in a bid to balance the budget inthe next fiscal year and cut costs in the long term.

The amendments to town ordinances were enacted Tuesday night ina series of unanimous votes by the five council members. Thecouncil had given preliminary approval two weeks ago to the packageof changes, which includes setting a minimum retirement age andincreasing employee contributions for health insurance.

The new ordinances were approved even as the town continuesnegotiations for new contracts with the unions that representpolice officers, firefighters and Town Hall employees. All threecontracts expire June 30, and talks with the unions had coveredsome of the same issues in the amended ordinances.

Union members have criticized the council's plan to changepension benefits through ordinances rather than reaching agreementat the negotiating table. A dozen firefighters reiterated thoseobjections Tuesday night. They said that the changes would forcesenior firefighters to retire early to qualify for benefits beforeJuly 1, when many of the amendments will take effect.

"This is going to push guys like myself to leave," said DavidStudley, a 22-year member of the Fire Department.

Lt. William Leahy, president of Local 1104 of the InternationalAssociation of Fire Fighters, said, "We don't think you have theright to do this by state law and we will fight these."

But Council President Angelo Padula Jr. defended the council'sactions.

"Looking across the state, we're not the only ones coming upwith these ordinances," he said. "The taxpayers are strapped."

He said the town is still committed to negotiating with theunions. If any future agreements conflict with the ordinances, theordinances would be rescinded, he and other council memberssaid.

Nearly all the amendments to pension benefits will only affectemployees who retire after June 30, or employees who are hiredafter June 30. The 265 town workers who have already retired willnot see their benefits change.

At the top of the list of changes is the imposition of a minimumretirement age of 55 to receive a pension. Employees must also haveworked 25 years. A worker's pension would be reduced for feweryears of service, or if they retire at a younger age. Currently,employees receive full pensions for 20 years of service, and thereis no minimum age requirement. The change will affect new hires andemployees who have worked for the town for five years or less andare not vested in the pension system.

The council also approved changes to health benefits that willaffect all current employees by raising their required contributionfor health insurance to 20 percent annually. Police officers andfirefighters currently pay the equivalent of 8 percent to 9 percentof the premiums.

Anyone who retires after June 30 would have to make the same20-percent payment until Medicare kicks in at 65, when they wouldlose health insurance from the town. Currently, retirees do notcontribute to their health insurance.

In addition, pension payments will be calculated based on anaverage of an employee's salary in the final three years ofservice, rather than the last year alone.

Town Manager James Thomas said it is unclear how much the townwill save with all the changes.

"We haven't looked at that specifically," he said in response toa question from Leahy.